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Exploring the Impact of International Trade on Carbon Emissions: New Evidence from China’s 282 Cities

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  • Jing Wang

    (School of Economics, Huazhong University of Science and Technology, Wuhan 430074, China)

  • Jie Li

    (School of Aerospace Engineering, Huazhong University of Science and Technology, Wuhan 430074, China)

Abstract

Carbon emissions (CE) reduction has been an important measure to control global warming. With the deepening of internationalization, the import and export trade can have a significant influence on CE. In this study, the panel data of 282 cities in China from 2003 to 2016 were employed, and linear regression analysis with fixed effects, feasible generalized least squares and Driscoll–Kraay estimators were performed to assess the separate impacts of import and export trade on CE. The results show that there is a positive correlation between imports and CE, while the relationship is contrary for exports. The panel threshold regression method was further used for regression, and it found that there was one threshold value for gross domestic product (GDP) and two threshold values for gross industrial output (GIO) in the model. According to the division of threshold value, the impact of import trade on CE will turn from positive to negative, while the impact of export trade on reducing CE will be further enhanced. The structure of China’s import and export trade are used to illustrate the underlying mechanism of the different effects. For controlling CE in international trade, China should import more high-tech products to upgrade high-emission industries, and reduce the proportion of labor-intensive products exported.

Suggested Citation

  • Jing Wang & Jie Li, 2021. "Exploring the Impact of International Trade on Carbon Emissions: New Evidence from China’s 282 Cities," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8968-:d:612148
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